Eli5 how does buying debt work? And why can’t someone just purchase their own debt for a fraction of the cost then cancel it for themselves?

Question

I’ve seen stories of individuals buying up a bunch of debt for cents on the dollar then just forgiving it. Why can’t this been done on an individual scale?

In: 4529

Answer 1

Sometimes you can buy your own debt and cancel it for a fraction of the cost, it’s just called negotiating a lower amount to repay. Same cause and effect without the extra steps. Either way your credit score is going to be screwed.